Welcome!

Microservices Expo Authors: Stackify Blog, Liz McMillan, Simon Hill, Dalibor Siroky, John Worthington

Related Topics: Containers Expo Blog, Java IoT, Microservices Expo, Microsoft Cloud, Agile Computing, @CloudExpo

Containers Expo Blog: Blog Feed Post

The Changing Feel of VMware PEX

I've had the privilege to attend many VMware events in the past 4-5 years

In my 20 years in the technology industry, I've found that there are three types of product/service strategy discussions that companies (vendors) have:

  1. "Our new product/tool will change the world." - Occasionally this happens, but more often that not it's just a feature that could be implemented on any existing platform.
  2. "Our new product delivers immediate value to customers and solves an existing (widespread) problem". Companies will typically pay money to solve problems, especially if it saves them money or unlocks a new market opportunity. Typically this creates a new market for the vendor. VMware ESX did this for many years. Consolidate servers, save money.
  3. "Our value is no longer distinct, so let's embed it into a suite/bundle with other things, and hopefully take a larger piece of the pie (customer's budget) that is currently allocated to somewhere else."

I've had the privilege to attend many VMware events in the past 4-5 years (PEX, VMworld, VMUG, etc.), and the theme of those events always seemed to fall into the #1 or #2 buckets. It's what created such a passionate following for the products and the company. It created a very unique, "wow, if I do this, then something better happens" moment for many companies.

But this year's event was different. It had a #3 feel to it. Many of the themes that had been critical to VMware (VDI, virtualizing Mission-Critical Applications, etc.) were now buried within "suites".

Overall, the value proposition to the customer was no longer obvious. Most notably by the VMware people that were presenting solutions like "vCloud Suite". The theme had shifted from "buy for value" to "buy for potential value, if we can unlock it".

Here's an example. I sat through a "How to sell vCloud Suite" presentation, given by the Director of Product Management for vCloud (apologies, I didn't catch the presenter's name). The audience was VMware partners, primarily their go-to-market partners (VARs/SIs). After introducing the pieces of the vCloud Suite, his pitch went something like this (paraphrased):

  1. Great job selling vSphere. 30-40% of most applications are virtualized. Sometimes more.
  2. We're not going to call it "Cloud" anymore. It's now called "Software-Defined Data Center" (SDDC). vCloud used to be the answer to "how to get to Cloud?". vCloud is now the answer to "how to get to SDDC?".
  3. Getting to high-levels of virtualization was a CAPEX story. Inefficient hardware. Save customers hard costs. Getting to SDDC is an OPEX story. Inefficient people and processes. Save customers unknown/soft costs.
  4. IT still isn't very efficient, mostly because storage and networking aren't virtualized and controlled (via VMware) like server virtualization. Get your customers to virtualize those things. (NOTE: How to do that is not covered in this presentation).
  5. Overall, IT still isn't operating very efficiently. Sell them vCOPs to figure out where there are more inefficiencies, like stranded VMs, poorly provisioned storage, poorly configured networks, etc.

The product manager then continued for another 30 minutes talking about how to sell the rest of the vCloud components, but he never did get around to a clear value proposition for the customer. There was some discussion about the need to run IT-as-a-Service, but in essence it boiled down to "it's a big problem, so here's a big software suite to sell them". A classic example of #3 strategy.

Another example of where VMware seemed to have disconnected value-proposition was the announcement of the VMware Cloud Credits program. It was touted as a great way to help customers budget for using public cloud services. On the surface, it appeared to potentially be helping the 200+ vCloud Service Providers, that Pat Gelsinger was quoted as saying, "What is really amazing -- we haven't done anything to earn that business". But when I dug deeper with their Product Management team, I uncovered some interesting details that weren't part of the announcement.

  • Only available to existing vCloud-Powered SP. VMware decides who gets in the program; SP can't just opt-in.
  • VMware choosing which vCloud-SPs are allowed to participate based on geography, verticals, unique offerings.
  • The credits are sold independent of any vCloud SP. They basically operate like a gift-card.
  • vCloud-SP gets no visibility into which customers have bought credits, or the Channel-Partners (VAR/SI) that sold credits. No opportunities to market their differentiation directly to end-customers via the program.
  • vCloud-SP only gets visibility into end-customers once they are engaged directly with them, and then only Cloud credit-levels on that specific customer.
  • Credits expire in 12 months. End-customers can extend credit lifecycle if already engaged with a specific SP.
  • Unused credits can not be sold to other customers. Treated as a "license-agreement". No resale market will exist.
  • Unused credits can not be returned to Partner or VMware for credit/money.
  • vCloud-SP only gets revenue if credits are used.
  • vCloud-SP must translate their existing services/service-level pricing into Cloud Credits (VMware creating some application-centric calculators).

So it's a potential revenue source for both the Channel partner and VMware, but the vCloud SPs are indirectly left out of the supply-demand loop. I can understand that VMware doesn't want their end-customers to get bombarded with marketing from the vCloud SPs because of this program, but that is already happening today. This seems somewhat unusual if the program is actually attempting to drive demand for those vCloud-based SPs.

Those are just a couple of example of the changes that I experienced at VMware Partner Exchange (PEX) this year. None of them are an indictment of VMware failings, but they do appear to be a strong indication that VMware's strategies are moving more and more towards #3. Given the size of their ecosystem and installed base, it will be interesting to see how they adapt to these shifts.

Read the original blog entry...

More Stories By Brian Gracely

A 20 year technology veteran, Brian Gracely is VP of product management at Virtustream. He holds a CCIE #3077 and an MBA from Wake Forest University.

Throughout his career Brian has led Cisco, NetApp, EMC and Virtustream into emerging markets and through technology transitions. An active participant in the virtualization and cloud computing communities, his industry viewpoints and writing can also be found on Twitter @bgracely, on his blog Clouds of Change and his podcast The Cloudcast (.net). He is a VMware vExpert and was named a "Top 100" Cloud Computing blogger by Cloud Computing Journal.

@MicroservicesExpo Stories
Let's do a visualization exercise. Imagine it's December 31, 2018, and you're ringing in the New Year with your friends and family. You think back on everything that you accomplished in the last year: your company's revenue is through the roof thanks to the success of your product, and you were promoted to Lead Developer. 2019 is poised to be an even bigger year for your company because you have the tools and insight to scale as quickly as demand requires. You're a happy human, and it's not just...
"Opsani helps the enterprise adopt containers, help them move their infrastructure into this modern world of DevOps, accelerate the delivery of new features into production, and really get them going on the container path," explained Ross Schibler, CEO of Opsani, and Peter Nickolov, CTO of Opsani, in this SYS-CON.tv interview at DevOps Summit at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Cavirin Systems has just announced C2, a SaaS offering designed to bring continuous security assessment and remediation to hybrid environments, containers, and data centers. Cavirin C2 is deployed within Amazon Web Services (AWS) and features a flexible licensing model for easy scalability and clear pay-as-you-go pricing. Although native to AWS, it also supports assessment and remediation of virtual or container instances within Microsoft Azure, Google Cloud Platform (GCP), or on-premise. By dr...
The nature of test environments is inherently temporary—you set up an environment, run through an automated test suite, and then tear down the environment. If you can reduce the cycle time for this process down to hours or minutes, then you may be able to cut your test environment budgets considerably. The impact of cloud adoption on test environments is a valuable advancement in both cost savings and agility. The on-demand model takes advantage of public cloud APIs requiring only payment for t...
identify the sources of event storms and performance anomalies will require automated, real-time root-cause analysis. I think Enterprise Management Associates said it well: “The data and metrics collected at instrumentation points across the application ecosystem are essential to performance monitoring and root cause analysis. However, analytics capable of transforming data and metrics into an application-focused report or dashboards are what separates actual application monitoring from relat...
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
The benefits of automation are well documented; it increases productivity, cuts cost and minimizes errors. It eliminates repetitive manual tasks, freeing us up to be more innovative. By that logic, surely, we should automate everything possible, right? So, is attempting to automate everything a sensible - even feasible - goal? In a word: no. Consider this your short guide as to what to automate and what not to automate.
We just came off of a review of a product that handles both containers and virtual machines in the same interface. Under the covers, implementation of containers defaults to LXC, though recently Docker support was added. When reading online, or searching for information, increasingly we see “Container Management” products listed as competitors to Docker, when in reality things like Rocket, LXC/LXD, and Virtualization are Dockers competitors. After doing some looking around, we have decided tha...
It’s “time to move on from DevOps and continuous delivery.” This was the provocative title of a recent article in ZDNet, in which Kelsey Hightower, staff developer advocate at Google Cloud Platform, suggested that “software shops should have put these concepts into action years ago.” Reading articles like this or listening to talks at most DevOps conferences might make you think that we’re entering a post-DevOps world. But vast numbers of organizations still struggle to start and drive transfo...
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
Many enterprise and government IT organizations are realizing the benefits of cloud computing by extending IT delivery and management processes across private and public cloud services. But they are often challenged with balancing the need for centralized cloud governance without stifling user-driven innovation. This strategy requires an approach that fundamentally reshapes how IT is delivered today, shifting the focus from infrastructure to services aggregation, and mixing and matching the bes...
"Codigm is based on the cloud and we are here to explore marketing opportunities in America. Our mission is to make an ecosystem of the SW environment that anyone can understand, learn, teach, and develop the SW on the cloud," explained Sung Tae Ryu, CEO of Codigm, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, discussed how by using ne...
"CA has been doing a lot of things in the area of DevOps. Now we have a complete set of tool sets in order to enable customers to go all the way from planning to development to testing down to release into the operations," explained Aruna Ravichandran, Vice President of Global Marketing and Strategy at CA Technologies, in this SYS-CON.tv interview at DevOps Summit at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, discussed how data centers of the future will be managed, how the p...
DevOps teams have more on their plate than ever. As infrastructure needs grow, so does the time required to ensure that everything's running smoothly. This makes automation crucial - especially in the server and network monitoring world. Server monitoring tools can save teams time by automating server management and providing real-time performance updates. As budgets reset for the New Year, there is no better time to implement a new server monitoring tool (or re-evaluate your current solution)....
While we understand Agile as a means to accelerate innovation, manage uncertainty and cope with ambiguity, many are inclined to think that it conflicts with the objectives of traditional engineering projects, such as building a highway, skyscraper or power plant. These are plan-driven and predictive projects that seek to avoid any uncertainty. This type of thinking, however, is short-sighted. Agile approaches are valuable in controlling uncertainty because they constrain the complexity that ste...
"This all sounds great. But it's just not realistic." This is what a group of five senior IT executives told me during a workshop I held not long ago. We were working through an exercise on the organizational characteristics necessary to successfully execute a digital transformation, and the group was doing their ‘readout.' The executives loved everything we discussed and agreed that if such an environment existed, it would make transformation much easier. They just didn't believe it was reali...
"We're developing a software that is based on the cloud environment and we are providing those services to corporations and the general public," explained Seungmin Kim, CEO/CTO of SM Systems Inc., in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
The cloud revolution in enterprises has very clearly crossed the phase of proof-of-concepts into a truly mainstream adoption. One of most popular enterprise-wide initiatives currently going on are “cloud migration” programs of some kind or another. Finding business value for these programs is not hard to fathom – they include hyperelasticity in infrastructure consumption, subscription based models, and agility derived from rapid speed of deployment of applications. These factors will continue to...